ZEW index soars despite Brexit risks

The German ZEW index for the six month economic outlook increased by 12.8bsp to 19.2bsp, suggesting growing optimism among German investors, despite heightened geopolitical risks.

The monthly index, conducted among 202 analysts and institutional investors , revealed that the assessment of the current situation in Germany improved slightly, by 1.4 bsp to 54.5 bsp compared to the previous month.

While investors continued to be bearish in their assessment of the current situation across the Eurozone, with the index for the current climate declining by -0.8bsp to -10.0 bsp, the six month outlook for the Eurozone improved by 3.4bsp to 20.2bsp compared to the previous month.

“The more upbeat assessments of financial market experts bears testimony to a basic level of trust in the resilience of the German economy. Nevertheless, the macroeconomic context remains challenging. Besides the modest global growth outlook, the UK referendum on remaining in the EU has generated further uncertainity” comments ZEW president Achim Wambach.

Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.